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Agenda today…… YPLA Update Young People’s Learning – what the facts tell us Funding and Allocations for 2011/12

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Championing Young People’s Learning Funding and supporting academies…… Currently c 300 academies Budget for 2010-11 is £1.7 billion Financial support for young learners…… Education Maintenance Allowances for around 600,000 young people, others get support for e.g. childcare and dance and drama awards. The budget for 2010-11 is £663m Funding learning opportunities for 16-19 year olds….. and allocations to schools, colleges and other providers, including young offenders’ institutions. Around 1.4 million places, costing £6.4 billion in 2010-11 Our running costs are 5 pence for every £10 that we spend YPLA - three roles

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Championing Young People’s Learning YPLA objectives To deliver efficient systems for learner support To enable independent autonomous institutions of all kinds to flourish To support rapid growth in the number of academies To develop a nationally consistent and transparent funding formula post 16 based on individual need and learning aims Publish, publish, publish…….to inform market provision and individual choice

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Championing Young People’s Learning YPLA objectives (contd) To support local authorities in the exercise of their local strategic role To ensure budgetary control across all budgets and high standards of financial assurance To minimise the overhead that the YPLA takes in its own operating costs (currently 0.5%) To support equality of opportunity for the 2 million customers of our programmes and for our own staff

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Championing Young People’s Learning YPLA - Progress to date Accurate and timely payments to academies, colleges and all types of providers Paying 800 colleges / third sector providers directly – a change implemented in three weeks Paying 50% more academies than we were 2 months ago – with systems for paying new academies up and running from 1 September EMA is running smoothly – applications processed quickly with no queues Business Plan for 2010/11 agreed and on website Board brings cross-sector influence, expertise and commitment

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Championing Young People’s Learning Young people’s participation….Taking the long term view

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Championing Young People’s Learning Changes in Young People’s Learning over a Generation (1)

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Championing Young People’s Learning Changes in Young People’s Learning over a Generation (2)

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Championing Young People’s Learning Changes in Young People’s Learning over a Generation (3)

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Championing Young People’s Learning Changes in Young People’s Learning over a Generation (4)

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Championing Young People’s Learning While participation has increased, the number disengaged has edged down but is still stubbornly high……..

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Championing Young People’s Learning Source: Audit Commission report: Against the Odds, July 2010 NEET Most young people are never NEET: most NEET episodes last fewer than six months

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Championing Young People’s Learning Source: Audit Commission report: Against the Odds, July 2009 Long-term effects of being NEET on young men

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Championing Young People’s Learning A young person NEET in 2008 will cost an average of £56,000 in public finance costs before retirement age (for example, welfare payments, costs to health and criminal justice services, and loss of tax and national insurance revenue). Also £104,000 in opportunity costs (loss to the economy, welfare loss to individuals and their families, and the impact of these costs to the rest of society). The entire 2008 group of young people NEET could cost over £13 billion to the public purse and £22 billion in opportunity costs before they reach retirement age. Source: Audit Commission report: Against the Odds, July 2009 Costs of disengagement

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Championing Young People’s Learning So how will we now approach the allocations round for 2011/12?

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Championing Young People’s Learning 2011/12: Roles and Responsibilities The Role of Local Authorities: Statutory duty to secure enough suitable education and training for young people age 16-19 or up to age 25 if subject to learning difficulty assessment (ASCL duties remain unchanged) Identifying gaps, enabling new provision, developing the market - working with YPLA to maintain control of the available budget Local statement of priorities Ministerial Advisory Group considering key strategic role of local authority in education and children’s services (ages 0 – 19)

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Championing Young People’s Learning 2011/12: Roles and Responsibilities The role of YPLA: Data analysis and funding calculations Funding and financial assurance of colleges and other providers Strategic analyses of performance and participation by providers and within area

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Championing Young People’s Learning Allocations 2011/12: Draft Timeline November/December 2010 DfE issues grant letter confirming budget and key messages November 2010Local authorities advise YPLA of strategic priorities for their local area January 2011YPLA confirm to existing providers the volume of activity to be funded in 2011/12 [NB: not cash at this stage] February 2011YPLA provides information to local authorities on aggregated provisional allocations (volumes) and confirms any additional numbers to be funded outside the lagged approach Mid March 2011YPLA sets national base rate based on total volume of provision to be funded End March 2011Final allocations confirmed to all providers May 2011 onwardsYPLA issues funding agreements to providers for signature

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Championing Young People’s Learning Local Statement of Priorities LAs lead – can be joint Key points from strategic and local analyses and partnerships Overall position and trends on participation; attainment and provider quality: 2-3 year horizon Developed with 14-19 partnerships - but also a challenge to providers Significant gaps in provision – evidence based (If appropriate) proposals for specific structural changes eg Adding a sixth form to a school Opening/closing schools, colleges or other providers Merger or de-merger of institutions Developing new specialist provision

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Championing Young People’s Learning 2011/12: Funding and Contracting The YPLA will fund directly academies, colleges, private and charitable providers, and will fund local authorities for schools with sixth forms and some other budgets (e.g. Education Business Partnerships and Young Apprenticeships) Private Providers that deliver provision across YPLA regional borders will receive a single Contract for provision

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Championing Young People’s Learning 2011/12: How lagged funding works

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Championing Young People’s Learning Worked Example Total volumes (illustrative only – will use national figures) Total volume of learning Lagged dataNew provision College A2898 School B624 Academy C470 Provider D238 New Provider X65 New Provider Y105 Total4230170 Overall volume to be funded = 4400 Total volume = SLN multiplied by provider factor

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Championing Young People’s Learning Worked Example National Rate (illustrative only – will use national figures) Total funding available for participation (F)£12,980,000 Total volume of provision (V)4400 National Rate (F/V)£2950/SLN Note: all figures purely illustrative! Assumes a single rate for all provision – could vary

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Championing Young People’s Learning Worked Example Final Allocation SLN weighted by provider factor National Rate Allocation A – FE College2898£2950£8,549,100 B – School sixth form624£2950£1,840,800 All figures purely illustrative Assumes a single national rate for all provision

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Championing Young People’s Learning Worked Example Comments Could have a single national base rate for all provision or different rates for schools and FE as currently - depending on government policy Approach to convergence to national base rate to be agreed Transitional protection may be required to reduce levels of turbulence

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Championing Young People’s Learning 19-24 LLDD In 2011 / 12 YPLA will fund ISPs direct Work in 201/11 to develop, model and test a new approach to bringing together the main streams of funding for learners with LDD – SEN block grant, additional learning support, funding for provision in independent specialist providers Local authority duty to arrange learning needs assessment for young people with statement of special education needs

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Championing Young People’s Learning And finally, the big picture…….. October 20 th Spending Review results! Education White Paper late autumn – to include conclusions on LA role Allocations guidance to be published for consultation post White Paper Qualification pathways and the Wolf review of vocational education Learners with learning difficulties and disabilities and the Sarah Teather review of special needs provision. System challenges for all partners  Continue to improve the learning offer and raise participation  Narrow the gap in attainment Challenges for YPLA:  Growing number of academies  Supporting local authorities leadership role for 16-19  Simplifying funding for 16-19